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View all search resultsPresident Prabowo Subianto kicked off his state visit to France on Tuesday, seeking to elevate Indonesia-France relations as well as intensify cooperation in defense and renewable energy amid a volatile global landscape.
President Prabowo Subianto recently delivered a striking announcement: his administration plans to gradually place exports of Indonesia’s natural resources under state control to combat alleged under-invoicing by resource exporters. While the proposal could help address persistent under-invoicing, it has also raised concerns among businesses and economists, who warn that it risks becoming a misguided solution that opens the door to rent-seeking and ultimately harms the economy and public welfare.
In a speech outlining the Macroeconomic Framework and Fiscal Policy Points (KEM-PPKF), Prabowo told the House of Representatives on Wednesday that the deficit for 2027 was set at 1.8 to 2.4 percent of gross domestic product (GDP), below the legal cap of 3 percent.
State takeovers, interventions and investments in the private sector as part of a broader policy direction have met with mixed reception, with some cautioning that potential overreach could dampen investor sentiment and the business climate.
Deputy House Speaker Sufmi Dasco Ahmad said that Danantara has acquired stakes in ride-hailing platforms as the government orders tech firms to cut commissions and expand protections for on-demand drivers under a new regulation.
Talks about a potential merger between Gerindra and NasDem, two of the country’s five largest political parties, have recently emerged, a scenario that analysts said could alter the political landscape ahead of the 2029 presidential election and weaken prospects for opposition figures.
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